Debt collection system

• US 20060287949A1
• Filed: 06/16/2005
• Published: 12/21/2006
• Est. Priority Date: 06/16/2005
• Status: Abandoned Application

• Current Assignee: Gary C. Silverman
• Original Assignee: Gary C. Silverman
• Inventors: Silverman, Gary C.
• Application Number:
  US11/154,109
• Publication Number:
  US 20060287949A1
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Improved methods, systems, and software are provided for facilitating debt collection by utilizing a non-term life insurance policy for making payments due by debtors to creditors. The life insurance policy can be implemented as, or in conjunction with, a sinking fund for maintaining premium payments received from a debtor under the policy. Periodic and/or lump sum payments to the creditor on behalf of the debtor can be made from the sinking fund, allowing the creditor to receive satisfaction of the debt. Various features can be implemented to provide for the entire amount of debt owed by the debtor to the creditor and further provide cash flow to the creditor after an initial period of contribution. In the event of death of the debtor, the creditor can receive full payment for the outstanding debt.

Claims

1. A method for providing debt collection services, the method comprising:

detecting a default condition applicable to a debtor in relation to a creditor;

providing a life insurance policy to the debtor;

receiving a premium payment from the debtor pursuant to terms of the life insurance policy;

depositing the premium payment into a sinking fund; and

providing a benefit payment from the fund to the creditor in satisfaction of the default condition.

2. The method of claim 1, the life insurance policy is a non-term life insurance policy.

3. The method of claim 2, the life insurance policy is a guaranteed issue life insurance policy.

4. The method of claim 3, the life insurance policy is a whole life insurance policy.

5. The method of claim 2, the life insurance policy is subject to simplified underwriting.

6. The method of claim 2, the life insurance policy is subject to group underwriting.

7. The method of claim 2, the life insurance policy is subject to full underwriting.

8. The method of claim 1, further comprising:

utilizing a guaranteed annuity in place of the life insurance policy.

9. The method of claim 1, the default condition is a default on a student loan.

10. The method of claim 1, the benefit payment is made upon death of the debtor.

11. The method of claim 1, further comprising:

in place of the receiving step, receiving a plurality of premium payments from the debtor pursuant to terms of the life insurance policy;

in place of the depositing step, depositing the premium payments into a sinking fund; and

in place of the second providing step, providing benefit payments from the fund to the creditor in satisfaction of the default condition.

12. The method of claim 11, the benefit payments are made periodically during the pendency of the life insurance policy.

13. The method of claim 1, the method is performed over a computer network.

14. The method of claim 13, the network is the Internet.

15. A system for providing debt collection services, the system comprising:

a creditor component for detecting a default condition applicable to a debtor in relation to a creditor;

an insurance provider component for providing a life insurance policy to the debtor, receiving premium payments from the debtor pursuant to terms of the life insurance policy, and depositing the premium payments; and

a sinking fund component for receiving the premium payments from the insurance provider component and providing benefit payments from the deposited premium payments to the creditor in at least partial satisfaction of the default condition.

16. The system of claim 15, the life insurance policy is a non-term life insurance policy.

17. The system of claim 16, the life insurance policy is a guaranteed issue life insurance policy.

18. The system of claim 17, the life insurance policy is a whole life insurance policy.

19. The system of claim 16, the life insurance policy is subject to simplified underwriting.

20. The system of claim 16, the life insurance policy is subject to group underwriting.

21. The system of claim 16, the life insurance policy is subject to full underwriting.

22. The system of claim 15, a guaranteed annuity is utilized in place of the life insurance policy.

23. The system of claim 15, the default condition is a default on a student loan.

24. The system of claim 15, the benefit payments are made upon death of the debtor.

25. The system of claim 15, the benefit payments are made periodically during the pendency of the life insurance policy.

26. The system of claim 15, the components being in communication over a computer network.

27. The system of claim 26, the network is the Internet.

28. A computer readable medium with software embodied therein, the software operable to perform a method for providing debt collection services when run by a computing system, the method comprising the steps of:

detecting a default condition applicable to a debtor in relation to a creditor;

providing a life insurance policy to the debtor;

receiving premium payments from the debtor pursuant to terms of the life insurance policy;

depositing the premium payments into a sinking fund; and

providing benefit payments from the fund to the creditor in satisfaction of the default condition.

29. The computer readable medium of claim 28, the computing system comprising:

a creditor component for performing the detecting step;

an insurance provider component for performing the receiving, depositing, and first providing steps; and

a sinking fund component for performing the second providing step.

30. The computer readable medium of claim 29, the components being in communication over a computer network.